Govt extends tax exemption to CM, LG relief funds

The government today announced extension of tax exemption on contributions to Chief Minister's Relief Fund and Lieutenant Governor's Relief Fund.
At present, there is tax exemption on funds given to Prime Minister's National Relief Fund.
In the Union Budget 2017-18, Jaitley said Chief Minister's Relief Fund (CMRF) and Lieutenant Governor's Relief Fund (LGRF) are of the same nature as the Prime Minister's National Relief Fund at the level of state or the union territory.
"Therefore, it is proposed to amend the said clause so as to provide the benefit of exemption to the Chief Minister's Relief Fund or the Lieutenant Governor's Relief Fund," he said.

This amendment to I-T Act will take effect retrospectively from April 1, 1998 and will apply from assessment year 1998-88 and subsequent years.